ROI analysis of apartment in SAFEER TOWER 2: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD (Dubai Land Department), the SAFEER TOWER 2 building is located in the Business Bay district and is part of the master project of the same name, Business Bay. DLD records show 191 unique sales transactions for this building.

2. Liquidity and transaction volume

SAFEER TOWER 2 has shown steady market activity, especially in recent years. Over the past 12 months, 7 sales transactions for 1-bedroom apartments (1BR) have been recorded in this building. Overall liquidity for the building is supported by the variety of apartment types.

By comparison, Business Bay as a whole shows a significantly higher transaction volume: over the past 12 months, more than 10,000 transactions have been registered for unit-type residential flats (all room types).

Rentals: In SAFEER TOWER 2 (and across all SAFEER buildings as a whole), no valid rental contracts for 1-bedroom apartments have been found over the past 12 months. Even when expanding the filter to the entire Business Bay district for 1-bedroom apartments, no suitable data for the last year has been identified. However, once the room-type filter is removed, the average rental level across the entire residential stock of the district shows consistently high liquidity (more than 15,000 contracts per year in the area).

3. Dynamics and level of purchase prices

The analysis focuses on the dynamics of the average price per square metre (transaction price/m²) for 1-bedroom apartments in SAFEER TOWER 2 for the years 2020–2026. The average price over the last 12 months amounted to 12,539 AED/m² (based on 7 transactions). This is significantly below the market average in Business Bay, where the 12‑month average for a comparable segment (residential flats 30–150 m²) stood at 25,854 AED/m².

SAFEER TOWER 2 shows high price volatility: there are both periods of low values (from 5,300 to 11,100 AED/m²) and isolated spikes above 21,000 AED/m², which is most likely explained by the specific characteristics of individual deals and a low transaction base in certain quarters.

In Business Bay, the average price has steadily increased from 14,000–16,000 AED/m² in 2020–2021 to more than 25,000 AED/m² in 2024–2025.

4. Rental dynamics (district)

For SAFEER TOWER 2 there is no data available to assess the average rental level or rental dynamics for 1-bedroom apartments over the past 12 months. Even at the SAFEER master-project level, across all SAFEER buildings, no valid rental contracts for 1-bedroom apartments have been found. When expanding the filter to the entire Business Bay stock for 1-bedroom apartments, there is still an insufficient data set to calculate and compare rental rates (by rooms) on this basis.

Nevertheless, if we take the average rental level across all residential flats in Business Bay over the past 12 months, the rate comes to 1,330 AED/m²/year.

Historically, for all apartments in Business Bay there has been a steady upward trend in rental rates: the average rent increased from 700–800 AED/m² in 2020–2021 to levels close to 1,200–1,300 AED/m² in 2023–2024, confirming a notable rise in rental costs.

5. Price level comparison (SAFEER TOWER 2 vs district)

At the moment (last 12 months):
– Price per m² in SAFEER TOWER 2 for 1-bedroom apartments: 12,539 AED/m².
– Price per m² for all residential apartments in Business Bay: 25,854 AED/m².
– Average rent across the entire residential stock of Business Bay: 1,330 AED/m²/year.

Thus, SAFEER TOWER 2 is significantly cheaper than the average prices in Business Bay (almost 2 times lower in terms of acquisition cost). However, the market rental rate for the building cannot be directly confirmed, and any further estimates can only be made at the district level.

6. ROI and fair price range

It is not possible to calculate ROI for the building — there are no valid DLD rental contracts for 1-bedroom apartments over the past 12 months, either for this building or for the SAFEER master project across all SAFEER buildings.

ROI for Business Bay:
– With an average purchase price of 25,854 AED/m² and an average rental rate of 1,330 AED/m²/year, the district’s gross yield (ROI_brutto) is around 5.1% per annum.
– Net yield after transaction costs (purchase, agency commission, DLD fees and others) is estimated in the range of 4.7–4.8% per annum. This is a typical figure for a stable market with elevated prices.

“Investment fair price” (at 7–8% ROI):
– To achieve a 7–8% yield at the district level, the purchase price should not exceed the 19,000–16,600 AED/m² range. The actual price for SAFEER TOWER 2 (12,539 AED/m²) is significantly below this range (effectively corresponding to a district-level yield of 10%+ per annum, assuming rental rates are at least in line with the district average).
– However, the absence of valid data on actual rental contracts does not allow this rental yield to be guaranteed for the specific building.

7. Conclusions and outlook

SAFEER TOWER 2 is a liquid and relatively inexpensive asset compared with the wider Business Bay district, offering a noticeably lower entry price in the 1-bedroom segment. However, no up-to-date long rental time series for this particular building are recorded in DLD, so a direct and accurate yield calculation is not possible. If we rely on the district’s average residential rental levels, the investment potential of SAFEER TOWER 2 appears more attractive than the Business Bay average due to its relatively low purchase price.

Over a 3–5 year horizon, Business Bay demonstrates high activity (both in sales and rentals), as well as growth in prices and rental rates. The asset remains promising for an investor, especially for a “buy to rent” strategy, but with the practical need to clearly confirm the achievable rental level for this specific building based on new DLD transactions.